Economy improving, inflation to drop further: SBP chief

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State Bank of Pakistan (SBP) Governor Jameel Ahmed stated on Thursday that the country is on track to meet its economic targets, with its debt levels and balance of payments remaining under control.

Speaking at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Ahmad said that inflation is expected to decline further in January, while interest rates will also decrease due to improvements in debt repayment

The governor attributed the positive trends to an increase in exports and remittances, which have contributed to a better current account balance. He emphasized the need to further boost exports, as this will lead to improvements in the current account and balance of payments.

Ahmad also highlighted the country's debt repayment progress, noting that the total debt has remained stable at around $100 billion. He added that the country has made a payment of $2 billion towards its Eurobond obligations and has successfully converted short-term debts into long-term ones.

Meanwhile, FPCCI President, Atif Ikram Sheikh, urged the State Bank to reduce interest rates to single digits to support economic growth. He noted that inflation has decreased to 4.1% in December 2024 and that the justification for double-digit interest rates no longer exists.

Other speakers at the event emphasised the importance of export-led growth, stating that it is the only viable and sustainable path for the country's economy.

They also called for easier and cheaper access to finance for trade, industry, and small and medium-sized enterprises